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February 17, 2023

IRS issues interim guidance for insurance providers on CAMT and invites comments

The IRS has announced (IR-2023-30) the release of interim guidance (Notice 2023-20) to help insurance companies and some other taxpayers comply with the new corporate alternative minimum tax (CAMT) until proposed regulations are issued. The notice addresses how to determine adjusted financial statement income with regard to: (1) variable contracts, (2) funds-withheld reinsurance and modified coinsurance agreements, and (3) the basis of certain assets held by previously tax-exempt entities that received a "fresh start" basis adjustment. The IRS requests comments on the notice by April 3, 2023. A Tax Alert is forthcoming.

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor